A new Real Estate Investment Trust (REIT) expected to capitalize on lucrative opportunities in the commercial and retail sectors is under review by the Securities and Exchange Commission (SEC). The Axtra Future City Freehold and Leasehold Real Estate Investment Trust (AXTRART), drawing on the established success of the Lotus’s Retail Growth Freehold and Leasehold Property Fund (LPF), is seeking approval to offer trust units to investors with potential to unlock new avenues for sustainable investment growth.
AXTRART is poised to become a leading real estate investment trust, leveraging the strength of LPF, whose market capitalization ranks among the top four of Thailand’s PF&REIT index. With a flexible management approach, AXTRART is prepared to deliver superior benefits and returns to investors.
Real Estate Investment Trust (REIT): An Attractive Financial Vehicle
Real Estate Investment Trusts (REITs) are increasingly popular investments due to their lower risk profile and consistent cash flow. REITs raise capital to invest in and manage real estate, generating income from rent and distributing at least 90% of their adjusted net profits as dividends. With Thailand’s REIT market poised for growth thanks to economic expansion and rising demand for high-quality retail space, AXTRART presents a compelling investment opportunity in a high-potential sector. Backed by, CP AXTRA Public Company Limited (CPAXT), Thailand’s leading wholesale and retail company, and managed by an experienced REIT manager, AXTRART is well-positioned to capture future growth opportunities.
Axtra Future City Property REIT Company Limited (AXTRARM), the REIT manager of AXTRART, will oversee operations, develop investment strategies, and effectively navigate AXTRART past challenges to maximize returns for unitholders.
Mr. Sarnthor Mudhasakul, Managing Director of Axtra Future City Property REIT Co., Ltd., highlighted the company’s strengths, stating “We benefit from strong shareholders—CP AXTRA Public Company Limited (CPAXT), a leader in wholesale and retail, and CP Future City Development Corporation Limited (CPFC), a real estate development expert. They provide us with deep expertise in real estate management and investment, particularly in retail properties. We can effectively analyze asset potential and adapt our strategies to market dynamics, including managing risks through geographically diversified investments and maximizing property value.”
AXTRARM’s experienced management team has a proven track record in investment, management, and real estate development. Their expertise includes identifying and investing in high-potential properties, enhancing asset value, and implementing effective and, proactive property management strategies. The team’s experience positions them well to successfully manage AXTRART.
Mr. Yossavee Suttikulpanich, Head of Primary Markets Distribution Division at Siam Commercial Bank Public Company Limited (SCB), AXTRART’s financial advisor, stated, “AXTRART represents a significant advancement in real estate investment thanks to its notable growth potential from several key strengths. These include the solid foundation of LPF, which holds high-quality assets such as 23 Lotus’s shopping centers in prime locations across Thailand. Last year, these properties generated over 2.8 billion Baht in rental and service income, with a 97% average occupancy. This is further strengthened by the support of leading wholesale and retail company, CPAXT, which manages the REIT’s properties and will leverage its extensive experience in shopping center and hypermarket management to drive AXTRART’s growth. AXTRART also benefits from CPAXT’s robust network across wholesale, retail, real estate, and other sectors, creating opportunities to attract new tenants, develop promotional activities, and expand the business.”
Thailand’s wholesale and retail sector is expected to experience sustained growth, driven by factors such as population growth, expanding middle class, increasing tourism, and infrastructure development. Investments in transportation infrastructure, such as mass transit and expressways, will connect cities and further stimulate retail growth nationwide. These factors are expected to drive rental rates for retail properties across Thailand. Furthermore, SCB EIC forecasts 2.6% GDP growth in 2025, which should boost consumer confidence and increase demand for retail space.
AXTRARM, along with its management team and business partners, is committed to establish AXTRART as a leading REIT. Leveraging its real estate expertise, transparent operations, and focus on sustainable returns, AXTRARM is dedicated to delivering value to investors.
